Abstract

The topic of convergence has been around for decades. Forecasters have long predicted the coming of a digital age, where semiconductors, computing, communications, and other forms of electronics would converge into overlapping industries. This article explores the technological foundations of digital convergence and the managerial requirements for success. It argues that mastering digital convergence does not require a magical new set of technologies. Too many companies have sought, and failed, to master digital convergence with a big technological breakthrough or a grand acquisition. Instead, firms should adopt a strategy that I summarize in the acronym CHESS, which stands for creative combinations, horizontal solutions, externalities and standards, scale and bundling, and new production techniques called system-focused development.